Technicals w/e 21 Nov 08

As forecast the bullish bias on both gold and silver materialised last week. The levels of $1168AUD for gold and $9.60USD for silver now become important levels of support. Some retest of these levels may be seen early next week but the path of least resistance is up from here.

Gold weekly (in $AUD) click on chart for larger view
Our short term targets forecast last week were achieved. Should gold break above $1300AUD we will see a quick move to $1415. An impulsive move could see $1450AUD a point of very strong resistance. Good support is now in place at $1150AUD.




Silver daily (in USD)click on chart for larger view
Silver tested and held our $8.93 resistance levels this week. The predicted bounce to $9.60USD was achieved with Fridays strong rally. Strong closes on a Fridays are a bullish signal. With the $9.63USD target achieved it should now provide solid support. We expect a run to $10.50USD this week with a breakout target of $13.50USD soon. Big moves may be coming for silver.